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pas Next Page revious Page uestion 11 (3 points) A project requires certain investment X...

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pas Next Page revious Page uestion 11 (3 points) A project requires certain investment X today. It's profitability index is 1.25. The project is evaluated based on the firm's 1296 cost of capital. Year 1 this project will generate cash inflow of $50,000. This cash flow will increase by 525,000 each year for years 2 through 5. In other words, starting year 1. the cash flow will be $50.000 and this will increase by additional $25.000 for years 2 through 5. What is the project's Internal rate of return the IRR-7 16.29% O 21.76% 20.01% 15.47% Next Page Next Page Previous Page

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